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Issues Involved:
1. Application of incorrect 'peak credit' by the Assessing Officer (AO). 2. Invocation of provisions u/s 68 of the Income Tax Act. 3. Addition of commission income along with peak credit. Summary of Judgment: Issue 1: Application of Incorrect 'Peak Credit' The assessee contested the AO's application of incorrect 'peak credit' for AY 2009-10 and 2010-11. The AO assessed peak credits of Rs. 5.05 lakh and Rs. 39.95 lakh for the respective years, rejecting the assessee's calculation of Rs. 1 lakh and Rs. 6.50 lakh. The CIT(A) upheld the AO's assessment, stating that the AO rightly applied the combined peak theory after considering all entries in the undisclosed bank accounts. Issue 2: Invocation of Provisions u/s 68 The AO invoked provisions u/s 68 of the Income Tax Act, which the assessee argued was not applicable as no sum was found credited in the books of account. The CIT(A) supported the AO's decision, referencing similar cases where the ITAT, Kolkata upheld the addition to income by the combined peak credit theory. Issue 3: Addition of Commission Income The assessee argued that once the peak credit was added, the commission income should not be added again. The CIT(A) disagreed, confirming the addition of commission income as it was admitted by the assessee and disclosed in the return of income. Tribunal's Decision The Tribunal set aside the common issue to the file of the AO for verification of facts and fresh adjudication according to law. The AO was directed to examine the source of cash deposits, the names and addresses of beneficiaries, and whether the cash withdrawals were utilized for investments. The appeals were allowed for statistical purposes. Order Pronounced: The appeals were allowed for statistical purposes and the order was pronounced in the open court on 19th Dec., 2013.
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